Arm Holdings Plc has been a relatively expensive stock for investors to own since the company first issued American depositary receipts in 2023. But a wild surge that has nearly doubled the share price in a matter of weeks is pushing the valuation to levels investors rarely see.
Signage for the Arm AGI CPU chip at the Nasdaq MarketSite in New York, in March. Photographer: Michael Nagle/Bloomberg
Chipmakers are by far the hottest stocks in the market, but their recent surge is lending urgency to the debate over whether investors are buying into an artificial-intelligence bubble that’s due to burst.
Workers in the building 51 fab clean room at Micron Technology Inc. headquarters in Boise, Idaho, US, on Monday, June 10, 2024. The US announced in April its plans to award Micron Technology Inc. $6.1 billion in grants and as much as $7.5 billion in loans to help the memory-chip maker build new American factories, rounding out a slew of major federal awards for advanced semiconductor manufacturing. Photographer: Kyle Green/Bloomberg
A flood of new shares from companies looking to fund their artificial intelligence ambitions is raising questions on Wall Street about whether there will be enough buyers to soak them all up and what this pile of fresh equity will mean for stock prices more broadly.
An advertisement for AI for finance on a Wall Street newsstand near the New York Stock Exchange (NYSE) in New York, US, on Wednesday, July 2, 2025. US stocks were flat, erasing pre-market losses after a report showing an unexpected decline in employment raised concerns of slowing economic growth ahead of a more widely followed gauge of labor due Thursday.
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